Texas Instruments and ZEISS spearhead investment
Global tech firms have announced new China investment and expansion plans during the ongoing 5th China International Import Exhibition, showing strong confidence in the Chinese market.
During the CIIE, chip firm Texas Instruments, or TI, announced an expansion plan of its assembly and test facility in Chengdu. Once fully operational in the first quarter of next year, the factory will more than double TI's current assembly and test capacity in the city.
It also announced an expansion and automation update for its Shanghai product distribution center (PDC), with increased space from 4,000 square meters to 9,000 square meters. The upgraded PDC will enable customers to get same-day delivery in Shanghai and next-day delivery in the rest of China.
The moves in Chengdu and Shanghai underscore TI's deep commitment in China. It shows innovation and seeks opportunities in China in sectors such as green grid, electric vehicles and robotics systems.
It makes sense to see new investment from overseas firms when the US is embarking on a wider-range of tech sanctions in the domestic chip industry, industry insiders said.
Besides TI, chip firms including AMD, Intel, ASML and Lam Research are at the CIIE this year.
Tech giant ZEISS also announced a localized strategy and investment plan in China in the CIIE, with displays of semiconductor, industrial, medical, optical and optoelectronic technologies.
"We have foreseen the strong global presence of China because the demand and trends of the Chinese economy and society are well suited to our company's capabilities," said Maximilian Foerst, president & CEO of ZEISS China.
Foerst, a veteran expat living in Shanghai, called China as "the second home of ZEISS."
In October, ZEISS announced an investment of 170 million yuan (US$24.6 million) in Suzhou for a new research and manufacturing facility. At the beginning of 2022, it invested US$60 million to set up two investment arms in Shanghai.
The announcements are welcomed by their clients and partners in the CIIE.
Vivo, which has 400 million users globally, will continue cooperation with ZEISS on mobile imaging research and innovations, through a joint lab.
Vivo's latest foldable model X Fold+ features a co-engineered imaging system co-developed by both sides. The breakthrough on image innovation helps the company to expand in the high-end market segment, said Yu Meng, Vivo's vice president of imaging technology.